Crinetics Pharmaceuticals, Inc. (CRNX) | Investment Case

1. Company Snapshot

1.a. Company Description

Crinetics Pharmaceuticals, Inc., a clinical stage pharmaceutical company, focuses on the discovery, development, and commercialization of therapeutics for rare endocrine diseases and endocrine-related tumors.Its lead product candidate is Paltusotine, an oral selective nonpeptide somatostatin receptor type 2 agonist that has completed phase III clinical trial for the treatment of acromegaly, as well as completed phase II clinical trial to treat carcinoid syndrome and nonfunctional neuroendocrine tumors (NETs).The company is also developing CRN04777, an oral selective nonpeptide somatostatin type 5 receptor agonist, which is in phase I clinical trial for the treatment of congenital hyperinsulinism; and CRN04894, an oral adrenocorticotrophic hormone antagonist that is in phase I clinical trial for the treatment of Cushing's and congenital adrenal hyperplasia diseases.

Crinetics Pharmaceuticals, Inc.was incorporated in 2008 and is headquartered in San Diego, California.

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1.b. Last Insights on CRNX

Crinetics Pharmaceuticals' recent performance was driven by several positive factors. The company reported its Q3 2025 financial results, announcing the launch of PALSONIFY (Paltusotine) in the U.S., with encouraging early feedback from patients and physicians, and positive reimbursement trends. Additionally, Crinetics announced the first patient randomized in the pivotal Phase 3 CAREFNDR trial evaluating Paltusotine in carcinoid syndrome. Geode Capital Management LLC also raised its stake in the company by 1.0%. Furthermore, the company granted stock option awards and restricted stock unit awards to new non-executive employees, indicating business growth and expansion.

1.c. Company Highlights

Last Price	46.67
Change Percentage	-1.58%
Open	47.52
Previous Close	47.42
Market Cap ( Millions)	4429
Volume	557881
Year High	60.34
Year Low	24.1
M A 50	43.03
M A 200	34.56

FCF Yield	-8.04%
Dividend Yield	0.00%
ROE	-35.09%
Debt / Equity	4.58%
Net Debt / EBIDTA	13.38%
Price To Book	4.1
Price Earnings Ratio	-10.39
Price To FCF	-12.44
Price To sales	2885.06
EV / EBITDA	-9.46

2. Crinetics Pharmaceuticals' Q3 2025 Earnings: A Strong Launch Trajectory for PALSONIFY

Crinetics Pharmaceuticals reported a revenue of $0.1 million in Q3 2025, primarily from its licensing agreement with SKK, a Japanese partner. The company's research and development expenses increased to $90.5 million, driven by investments in late-stage clinical trials and its novel non-peptide drug conjugate (NDC) platform. Selling, general, and administrative expenses also rose to $52.3 million, reflecting investments in the successful execution of PALSONIFY's launch. The actual EPS came out at '-1.38' relative to estimates at '-1.27', indicating a wider loss per share than expected. As per Tobin Schilke, the company's cash position remains strong, with $1.1 billion in cash, cash equivalents, and investments.

Publication Date: Nov -14

                                    📋 Highlights
                                    Revenue & Licensing::
                                                Recognized $0.1M in Q3 2025 revenue from a licensing agreement with Japanese partner SKK.
Financial Burn Rate::
                                                R&D expenses reached $90.5M, and SG&A costs hit $52.3M in Q3 2025, reflecting pipeline investments and PALSONIFY launch efforts.
Cash Position::
                                                Maintained $1.1B in cash, cash equivalents, and investments, projecting net cash used in operations of $340M–$370M for 2025.
Market Access Success::
                                                50% of claims reimbursed via specialty pharmacies, with 70% of PALSONIFY prescriptions from community prescribers and 30% from PTC centers.
Pipeline Progress::
                                                Launched Phase 3 trials for paltusotine (carcinoid syndrome) and BALANCE-CAH (pediatric CAH), with key data readouts expected in 2026.

                                

Commercial Launch Progress

The launch of PALSONIFY is going well, with the company's field team engaging with stakeholders and executing across all aspects of the launch. The company is seeing a balanced mix of reimbursed patients and those on its Quick Start program, with 50% of claims reimbursed through specialty pharmacies. Isabel Kalofonos mentioned that payers are reimbursing PALSONIFY as per the label, and approvals are coming within 6-12 months.

Pipeline Advancements

Crinetics Pharmaceuticals is making significant progress with its pipeline, including the launch of its Phase 3 study for paltusotine in carcinoid syndrome and the activation of its BALANCE-CAH study for pediatric patients with CAH. The company is also working on a Phase 2 OLE data for Atumelnant, which will provide directionality on steroid reductions in Phase 3.

Valuation Metrics

Crinetics Pharmaceuticals' current valuation metrics indicate a high growth expectation. The company's P/S Ratio stands at 2561.13, indicating a high revenue growth expectation. The EV/EBITDA ratio is -8.38, suggesting that the company's enterprise value is not justified by its current EBITDA. Analysts estimate next year's revenue growth at 957.0%, which may justify the current valuation to some extent.

Future Outlook

The company is confident that PALSONIFY will become the first treatment of choice for all acromegaly patients. With a strong balance sheet and a clear path to continued value creation, Crinetics Pharmaceuticals is well-positioned to drive growth and expansion in the coming years. The company's current cash position is expected to fund operations into 2029, providing a sufficient runway for its growth plans.

3. NewsRoom

Crinetics Announces First Patient Dosed in Phase 1/2 Trial Evaluating CRN09682 for the Treatment of Neuroendocrine Tumors and Other Somatostatin Receptor 2-Expressing Tumors

Dec -03

Source: globenewswire.com

Fisher Asset Management LLC Cuts Holdings in Crinetics Pharmaceuticals, Inc. $CRNX

Dec -03

Source: defenseworld.net

Creative Planning Sells 1,445 Shares of Crinetics Pharmaceuticals, Inc. $CRNX

Dec -02

Source: defenseworld.net

Biotech Fund Dumps $12.3 Million in Crinetics Stock as Shares Remain 19% Lower on the Year

Nov -27

Source: fool.com

Geode Capital Management LLC Raises Stake in Crinetics Pharmaceuticals, Inc. $CRNX

Nov -24

Source: defenseworld.net

Crinetics Announces First Patient Randomized in Pivotal Phase 3 CAREFNDR Trial Evaluating Paltusotine in Carcinoid Syndrome

Nov -20

Source: globenewswire.com

Crinetics Pharmaceuticals Announces November 2025 Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Nov -10

Source: globenewswire.com

Why Crinetics Pharmaceuticals Stock Was Sliding on Friday

Nov -07

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.43%)

6. Segments

Novel Therapeutics

Expected Growth: 10.43%

Crinetics Pharmaceuticals' Novel Therapeutics segment growth is driven by increasing adoption of its pipeline of novel, oral somatostatin agonists for rare endocrine disorders, strong clinical trial results, and strategic partnerships. The company's focus on rare diseases with high unmet needs, combined with its innovative approach, positions it for continued growth.

7. Detailed Products

Parsaclisib

An oral, selective inhibitor of the MALT1 protease, being developed for the treatment of hematologic malignancies, including mantle cell lymphoma and diffuse large B-cell lymphoma.

CRN0477

An oral, non-peptide somatostatin receptor subtype 5 (SST5) agonist, being developed for the treatment of congenital hyperinsulinism and endocrine disorders.

CRN0481

An oral, non-peptide ACTH antagonist, being developed for the treatment of Cushing's disease and other disorders related to excess ACTH production.

CRN0491

An oral, non-peptide melanocortin receptor 1 (MC1R) agonist, being developed for the treatment of inflammatory disorders, including vitiligo.

8. Crinetics Pharmaceuticals, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Crinetics Pharmaceuticals, Inc. has a moderate threat of substitutes due to the presence of alternative treatments and therapies for the diseases it targets.

Bargaining Power Of Customers

Crinetics Pharmaceuticals, Inc. has a low bargaining power of customers due to the specialized nature of its products and the lack of alternatives.

Bargaining Power Of Suppliers

Crinetics Pharmaceuticals, Inc. has a moderate bargaining power of suppliers due to the availability of multiple suppliers for raw materials and services.

Threat Of New Entrants

Crinetics Pharmaceuticals, Inc. has a high threat of new entrants due to the growing interest in biotechnology and pharmaceuticals, making it easier for new companies to enter the market.

Intensity Of Rivalry

Crinetics Pharmaceuticals, Inc. operates in a highly competitive industry with many established players, leading to a high intensity of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	8.76%
Debt Cost	3.95%
Equity Weight	91.24%
Equity Cost	7.12%
WACC	6.84%
Leverage	9.60%

11. Quality Control: Crinetics Pharmaceuticals, Inc. passed 3 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

SpringWorks Therapeutics

A-Score: 5.1/10

Value: 6.2

Growth: 4.4

Quality: 5.0

Yield: 0.0

Momentum: 9.5

Volatility: 5.3

1-Year Total Return ->

Agios Pharmaceuticals

A-Score: 4.4/10

Value: 6.7

Growth: 4.1

Quality: 7.2

Yield: 0.0

Momentum: 4.0

Volatility: 4.3

1-Year Total Return ->

Cytokinetics

A-Score: 3.5/10

Value: 8.0

Growth: 0.4

Quality: 4.9

Yield: 0.0

Momentum: 6.0

Volatility: 1.7

1-Year Total Return ->

Sarepta Therapeutics

A-Score: 3.2/10

Value: 6.4

Growth: 7.9

Quality: 4.2

Yield: 0.0

Momentum: 0.0

Volatility: 1.0

1-Year Total Return ->

Avidity Biosciences

A-Score: 3.2/10

Value: 6.2

Growth: 2.7

Quality: 5.1

Yield: 0.0

Momentum: 4.0

Volatility: 1.0

1-Year Total Return ->

Crinetics Pharmaceuticals

A-Score: 2.5/10

Value: 6.4

Growth: 1.1

Quality: 3.9

Yield: 0.0

Momentum: 1.0

Volatility: 2.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

22.83%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.84%

Crinetics Pharmaceuticals, Inc. - US22663K1079

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on CRNX

1.c. Company Highlights

Strong Momentum

Average Quality

Average Growth

Earnings Miss

Revenues Beats

Revenues Miss

Stable Momentum

Earnings Beats

Weak Momentum

Lower Growth

2. Crinetics Pharmaceuticals' Q3 2025 Earnings: A Strong Launch Trajectory for PALSONIFY

Commercial Launch Progress

Pipeline Advancements

Valuation Metrics

Future Outlook

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.43%)

6. Segments

Novel Therapeutics

Expected Growth: 10.43%

7. Detailed Products

Parsaclisib

CRN0477

CRN0481

CRN0491

8. Crinetics Pharmaceuticals, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Crinetics Pharmaceuticals, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

46.67$

Current Price

46.67$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA